What Can North Andover Learn From Fall River's Amazon Warehouse?

FALL RIVER, MA — As North Andover and Merrimack Valley officials tout the decision by Amazon to locate a regional distribution center along the banks of the Merrimack River, officials in Fall River describe the experience with the company as a mixed blessing. Yes, that city's distribution center has brought jobs and tax revenue, but it has also brought traffic and other complications.

Officially known as Amazon Fall River BOS7 Fulfillment Center, the facility is 1.4 million square feet — roughly the size of 40 football fields. It ships hundreds of thousands of packages each week, primarily to customers in Massachusetts, Rhode Island, New Hampshire and Maine. The North Andover facility, and 30 others the company plans to build in coming years, would help the company meet its goal of offering more same-day deliveries.

Projected Versus Actual Job Numbers

Amazon is promising 1,500 jobs in North Andover, similar to the number of jobs it promised in Fall River. But in the south coast city, the number of full-time, permanent Amazon workers was 951 in December, down more than 400 positions from 1,372 in December 2017. Meanwhile, the number of Fall River residents working at the distribution center was half of what it was when the facility first opened.

"We look forward to continued job creation and investments locally and across the state," Amazon said in a statement when those numbers were first reported by the Boston Business Journal in March. "We are grateful for the strong, local support we have received in Fall River and we will continue to invest in our employees and the communities in which they live and work."

Amazon is required to report employment numbers in Fall River because it received state and local tax breaks. Under the terms of that deal, Amazon must have at least 500 full-time employees at the facility.

So far, the company has not asked for tax breaks for the North Andover facility, but the town and state will split the $7 million it will cost to extend a sewer line by two miles on the Osgood Landing property.

Related Story: Amazon's North Andover Tax Bill Could Top $4 Million

Under a tax increment financing deal in Fall River, Amazon has a 100 percent exemption for all real and personal property tax between 2018 and 2021, a 75 percent exemption between 2022 and 2024, a 50 percent exemption from 2025 to 2028, and a 25 percent exemption from 2029 to 2032. The 15-year deal saves Amazon an estimated $100 million in taxes.

Meanwhile, the center has not made a dent in Fall River's unemployment rate, which is twice the state average. It was 6.8 percent in March, up slightly from 6.7 percent when the facility opened.

Wage War

It was good news for workers at the Fall River distribution center when Amazon said in October it would raise the minimum wage for workers to $15 per hour. Before that, the minimum wage for Amazon workers was $12.50. Hourly workers at the plant now make between $15 and $18 per hour, well above the state minimum wage of $12 per hour. But those increases have made it difficult for other businesses in the region to compete.

"There was some undercurrent of concern when we were recruiting Amazon, that it would make it harder for local businesses to recruit good workers,"Kenneth Fiola, the executive vice president of the Bristol County Economic Development Consultants, told the Herald News. "I think that has happened."

The Fall River facility is not one of the company's newer, robotic facilities. But the company is looking for ways to automate work in its distribution centers. Last year the company offered incentives to employees to leave their current jobs to start businesses to deliver packages as independent contractors for the company. Under the program, the workers would receive three months salary as well as up to $10,000 to start their delivery businesses.

More than 200 businesses have been started under the program since it launched last June, with many of those companies leasing vans and other equipment from Amazon. While the company says its part of its ongoing push to cut shipping times, analysts have said the move is also related to a push for more automation and fewer Amazon employees.

Questions About Working Conditions

More troubling is Amazon's reputation as an employer. At least seven women who worked in fulfillment centers have filed lawsuits against the company claiming they were discriminated against because they were pregnant. In the lawsuits, several of which have already been settled out of court, the women claimed their requests for longer bathroom breaks and less time on their feet, were denied by the company. Some claimed they lost their jobs when they reported their pregnancies.

"It is absolutely not true that Amazon would fire any employee for being pregnant; we are an equal opportunity employer," Amazon said in a statement when CNET reported on the lawsuits earlier this month. "We work with our employees to accommodate their medical needs including pregnancy-related needs. We also support new parents by offering various maternity and parental leave benefits."

None of the lawsuits CNET reported on were filed by Fall River workers. The lawsuits had been filed by fulfillment center workers in California, Pennsylvania and New Jersey.

"Amazon wants to push out as much product as possible," Beverly Rosales, who filed her suit in January and is due in June, told CNET. "They need as many people that don't need accommodations to work there. They care more about the numbers than their employees."

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).